Analysis by one crypto research firm showed that Tether (USDT) market dominance diminished from 94 percent in January to only 74 percent in November.
The dominance of Tether (USDT) on the stablecoin market took a slight hit after the entry of more competitors in the past year, data suggested.
According to cryptocurrency analysis research firm Diar, Tether’s superiority over all stablecoins dropped from 94 percent early this year to only 74 percent in November.
Diar credited this drop to the emergence of at least eight other stablecoins on the market. These stablecoins include US dollar-pegged USD Coin (USDC), Gemini Dollar (GUSD), Paxos Standard Token (PAX), TrueUSD (TUSD), Dai (DAI), and Stasis EURS (EURS), together with the euro-pegged Tether Euro (EURT).
At the start of the year, only 3 stablecoins traded, with Tether owning 94% of outstanding stablecoin market supply. Competition has ramped up with at least 8 new contenders dropping Tether's dominance to 74% at the end of November.
In this week's issue: https://t.co/a8TVJDpdA1 pic.twitter.com/5aCzF7x10k
— Diar (@DiarNewsletter) December 5, 2018
A stablecoin is a type of crypto that has its price pegged to a stable currency, hence its name. Digital coins of this type are used where the use of highly volatile cryptos would be detrimental.
Tether and the other seven stablecoins mentioned act as digitalized versions of the US dollar.
As of December 6, Tether still has a tight grip over the stablecoin market, with over US$1.85 billion in market capitalization—the seventh largest amongst all cryptos.
Following USDT from afar is TrueUSD at US$200 million, Paxos Standard Token at US$161 million, and Dai at US$63 million.
| Related: 4 New Stablecoins Available for Trade on Bitfinex, Ethfinex